Order 2012

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- 11
Served: August 7, 2012

U N I T E D S

T A T E S O F A

M E R I C A D E P A R T M E N T O F T R A N S P O R T A T

I O N UNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 7 th day of August , 2012

Fitness Determination of

KEY LIME AIR CORPORA TION

as a commuter air carri er under section 49 U.S.C. § 41738 Docket DOT

- OST

- 2009

- 0116

FINAL ORDER

By Order 2012

- 7

- 5 , issued July 6, 2012 , we directed all interested persons to show cause why we should not make final our tentative findings and conclusions that Key Lime Air C orporation is fit, willing, and able to provide scheduled passenger service as a commuter air carrier using

small aircraft 1 pursuant to Part 135 of the Federal Aviation Regulations. Interested persons were given 14 calendar days to file objections to the order.

No objections to the show

- cause order were received.

ACCORDINGLY,

1. We find that Key Lime Air Corporation is fit, willing, and able under 49 U.S.C. 41738 to provide scheduled passenger service as a commuter air carrier using small aircraft pursu ant to Part 135 of the Federal Aviation Regulations.

2. We issue a Commuter Air Carrier Authorization to Key Lime Air Corporation , subject to the Terms, Conditions, and Limitations attached.

1 Small aircraft is defined as any aircraft originally designed to have a m aximum passenger capacity of less than 60 seats or a payload capacity of no more than 18,000 pounds.2

3. We will serve a copy of this order on the persons listed i n Attachment A.

By:

SUSAN L . KURLAND Assistant Secretary

for Aviation and International Affairs

An electronic version of this document is available on the World Wide Web at: http://www.regulations.gov

# Commuter Air Carrier Authorization

KEY LIME AIR CORPORATION

is authorized, subject to the provisions of Subtitle VII of Title 49 of the United States Code, the orders, rules, and regulations issued thereunder, and the attached Terms, Conditions, and Limitations, to engage in scheduled passenger air transportation operations as a commuter air carrier.

This authorization is not transferable without the approval of the Department of Transportation.

By Direction of the Secretary

Issued by Order 2 012

- 8

- 11 Susan L . Kurland

On August 7 , 2012 Assistant Secretary for Effective (See Attached) Aviation and International Affairs

### Attachment



### Terms, Conditions, and Limitations

KEY LIME AIR CORPORA TION

is authorized to engage in scheduled passenger a ir transportation operations as a commuter air

carrier.

This authority is subject to the following provisions:

(1) The authority to conduct scheduled passenger operations will not become effective until six (business) days after the Department has receiv ed the following documents; provided

, however , that the Department may stay the effectiveness of this authority at any time prior to that

date:

(a) A copy of the holder's Air Carrier Certificate and Operations Specifications authorizing such operations fr om the Federal Aviation Administration (FAA).

(b) A certificate of insurance on OST Form 6410 evidencing liability insurance coverage meeting the requirements of 14 CFR 205.5(b) for all of its aircraft.

(c) A statement of any changes the holder has under gone in its ownership, key personnel, operating plans, financial posture, or compliance history, since the date of the Show Cause Order in this case.

(d) A revised list of pre

- operating expenses already paid and those remaining to be paid, as well as inde pendent verification that the holder has available to it funds sufficient to cover any remaining pre

- operating expenses and to provide a working capital reserve equal to the operating costs that would be incurred in three months of operations.

(2) Pending receipt of effective authority, the holder may not accept payment of any kind (i.e., cash, check, or credit card) or issue tickets for scheduled passenger operations, and any advertisement or listing of flights by the holder must prominently state: "This service is subject to receipt of government operating authority."

(3) The holder shall at all times conduct its operations in accordance with the requirements of 14 CFR Part 298 and any other regulations prescribed by the Department of Transportation for the services authorized here, and with such other reasonable terms, conditions, and limitations as the Department of Transportation may prescribe in the public interest.

(4) The holder may not operate aircraft designed to have a maximum passenger capacit y of more than 60 seats or a maximum payload capacity of more than 18,000 pounds.2

(5) The holder's authority under this certificate is effective only to the extent that such operations are also authorized by the Federal Aviation Administration (FAA), an d comply with all U.S. Government requirements concerning security, including, but not limited to 49 CFR Part

1544. ∗

(6) The holder shall at all times remain a "Citizen of the United States" as required by 49 U.S.C. 40102(a)(15).

(7) The holder shall mai ntain in effect liability insurance coverage as required under 14 CFR Part 205. Failure to maintain such insurance coverage will render this authority ineffective, and this or other failure to comply with the provisions of Subtitle VII of Title 49 of the United States Code or the Department's regulations shall be sufficient grounds to revoke this authority.

(8) In the event that the holder receives effective scheduled passenger authority, the following additional conditions will apply:

(a) The holder may reduce or terminate service at any point or between any two points, subject to compliance with the provisions of 49 U.S.C. 41734 and all orders and regulations issued by the Department of Transportation under that

section.

(b) The holder may not provide scheduled passenger air transportation to or from Dallas (Love Field), Texas, except within the limits set forth in section 29 of the International Air Transportation Competition Act of 1979, as amended or as modified by any future legislation addressing a ccess restrictions to or from Love

Field.

(9) Should the holder propose any substantial change in its ownership, management, or operations (as defined in 14 CFR 204.2(l)), it must first comply with the requirements of 14 CFR

204.5.

(10) In the event tha t the holder does not commence actual flying operations as a commuter air carrier under this authority within one year of the date of the Department's determination of its fitness, its commuter authority shall be revoked for dormancy. Further, in the even t that the holder commences but subsequently ceases all scheduled passenger operations, the authority granted here shall be suspended under the terms of 14 CFR 204.7 and the holder may neither recommence nor advertise such operations unless its fitness to do so has been redetermined by the Department. Moreover, if the holder does not resume such operations within one year of its cessation, its commuter authority shall be revoked for dormancy.

∗ To assure compliance with all applicable U.S. Government requirements concerning security, the holder shall, before commencing any new service (includ ing charter flights) to or from a foreign airport, contact its Principal Security Inspector (PSI) to advise the PSI of its plans and to find out whether the Transportation Security Administration has determined that security is adequate to allow such airpo rt(s) to be served.Attachment A

SERVICE LIST FOR

KEY LIME AIR

CORPORATION

CLIFFORD HONEYCUTT

PRESIDENT

KEY LIME AIR CORPORATION

13252 EAST CONTROL TOWER ROAD

ENGLEWOOD COLORADO 80112 GERALD F MURPHY

CROWELL & MORING LLP

1001 PENNSYLVANIA AVNUE NW

WASHINGTON DC 20004

- 2595 MR PETER LYNCH AGC

- 300

ASST CHIEF COUNSEL FOR

ENF ORCEMENT

FEDERAL AVIATION ADMINISTRATION

800 INDEPENDENCE AVE SW

WASHINGTON DC 20591

MR WILLIAM J WEBER

CERTIFICATION SECTION MANAGER

FAA AFS

- 900

45005 AVIATION DRIVE SUITE 131

DULLES VA 20166 CHRISTOPHER A LANG

PRINCIPLE OPERATIONS INSPECTOR

FEDERAL AVIATION

ADMINISTRATION

DENVER FSDO

26805 EAST 68 TH AVENUE

DENVER COLORADO 8024 9 OFFICE OF AIRLINE

INFORMATION

DOT/R IT A /BTS

1200 NEW JERSEY AVE SE

WASHINGTON DC 20590